Can an insurer take back money for an accident due to a pay out on a prior claim?

Question Details: My wife was involved in an auto accident where another driver stuck her in a alley. Turns out the other driver has the same insurance company. The insurance company wants to total the vehicle out and said the cash value is 10K- however there was a prior insurance claim on the vehicle for hail damage that never was repaired but the insurance company paid out 4.5K so they are taking that 4.5k back and only offering 5.5k. Can they take back this entire 4.5k from the prior claim?

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